Wednesday, April 30, 2014
SIIC: Announced a robust set of 1Q14 results which was in line with bullish estimates as net profit surged 149.5% to Rmb63.6m on revenue of Rmb297.8m (+50.7%). Gross margins meanwhile dipped 5.5 ppt to 29.1%. The strong top-line was led by a 187% increase in revenue from the construction business segment to Rmb117.1m, higher revenue from the water treatment and water supply business segment to Rmb168.2m (+12%), contribution of Rmb4.1m from the waste incineration business segment and a 37% rise in other revenue to Rmb8.4m. Bottom-line was aided by an almost four-fold jump in other operating income to Rmb10.9m due to foreign exchange gains resulting from the movement of RMB against SGD, and a 16.1% rise in finance income to Rmb55.6m due to contributions from Shanghai Qingpu and Dazhoi Jiajing which were acquired in 1Q14. Going forward, SIIC foresees more opportunities to strengthen and expand its foothold in the environmental protection sector, driven by China’s determination to ameliorate its mounting environmental challenges. The group aims to expand its operations through merger and acquisition as well as through organic growth and hope to break new frontiers and to explore other areas in the environmental protection industry such as soil treatment, renewable energy and air purification.